Cryptocurrency tax preparation involves reporting capital gains and losses from digital asset transactions. This service supports investors who buy, sell, trade, or mine cryptocurrency and need to report these transactions on their tax returns. We calculate gains and losses using the correct cost basis and holding periods for tax purposes.
The process begins with gathering transaction records from exchanges, wallets, and mining activities. We organize all buy and sell transactions chronologically and calculate cost basis using the appropriate method. We determine short-term and long-term holding periods based on the date acquired and date sold. We also handle complex transactions like forks, airdrops, and staking rewards.
We prepare Form 8949 and Schedule D to report cryptocurrency transactions, showing the description, date acquired, date sold, proceeds, cost basis, and gain or loss for each transaction. We calculate the total capital gains tax liability and prepare any necessary estimated tax payments. We also handle wash sale rules and like-kind exchange reporting where applicable.
Typical documents include exchange transaction histories, wallet addresses, mining income records, fork and airdrop receipts, and cost basis tracking spreadsheets. We provide organized transaction summaries and gain/loss calculations. This service helps cryptocurrency investors in Boston, MA comply with federal tax reporting requirements for digital assets.
What's included
Comprehensive crypto gains reporting
Organization of exchange transaction records
Cost basis calculation for all transactions
Holding period determination
Preparation of Form 8949 and Schedule D
Mining income reporting
Fork and airdrop income calculation
Wash sale rule application
Estimated tax payment guidance
Common situations
When you need crypto gains reporting
Miners reporting mining rewards and equipment expense deductions
Holders of forked cryptocurrencies needing basis allocation
FAQs
Crypto Gains Reporting questions answered
How do you report cryptocurrency sales in Boston, MA?
We report cryptocurrency sales in Boston, MA using Form 8949 and Schedule D, calculating capital gains as the difference between sale proceeds and your adjusted cost basis for each transaction.
What is the holding period for cryptocurrency in Boston, MA?
The holding period for cryptocurrency in Boston, MA begins on the date you acquire the asset. Sales within one year are short-term capital gains, while sales after one year are long-term capital gains.
How do you calculate cost basis for crypto transactions in Boston, MA?
We calculate cost basis for crypto transactions in Boston, MA using the FIFO method unless you specify another acceptable method. We track acquisition dates and costs to determine gains or losses accurately.
Do you report mining income in Boston, MA?
Yes, we report cryptocurrency mining income in Boston, MA as ordinary income based on the fair market value of mined coins on the date they were received, separate from capital gains on subsequent sales.
How do you handle crypto forks and airdrops in Boston, MA?
We report crypto forks and airdrops in Boston, MA as taxable income based on the fair market value on the date received. We track cost basis for any subsequent sales of forked or airdropped tokens.
Compliance Note
We provide tax preparation services. We do not provide legal advice. Complex cryptocurrency tax matters may require additional professional consultation beyond basic preparation services.
Example engagement
How we help with crypto gains reporting
Service Type: Crypto Gains Reporting
Location: Boston, MA
Scope: Reporting of cryptocurrency trading gains and losses
Client Situation
Active crypto trader needing to report multiple exchange transactions
Our Approach
Collect transaction records from exchanges, calculate cost basis and holding periods, prepare Form 8949 showing gains and losses, calculate total tax liability
Expected Outcome
Complete capital gains reporting with accurate cost basis calculations
Example of the type of engagement we can handle
Ready to get started
Get help with crypto gains reporting
Contact us to discuss your situation in Boston, MA. We can share references upon request.